GBP/JPY
Daily Pivots: (S1) 173.61; (P) 174.08; (R1) 174.44;
The break of 174.09 resistance turned support raised the change of near term reversal. Intraday bias is back on the downside for 172.36 support. Break will turn outlook bearish for a test on key support level at 169.53. On the upside, above 175.36 will extend the larger up trend to next long term fibonacci level at 183.96.
In the bigger picture, the up trend from 116.83 (2011 low) is still in progress. But again, as medium term momentum is unconvincing as seen in weekly MACD. Thus, we'd expect strong resistance from 50% retracement retracement of 251.09 to 116.83 at 183.96 to limit upside and bring reversal. Meanwhile, sustained break of 169.53 support should confirm medium term topping and turn outlook bearish.
EUR/JPY
Daily Pivots: (S1) 138.03; (P) 138.33; (R1) 138.55;
The EUR/JPY is staying in established range above 137.71 low and intraday bias remains neutral. Near term outlook is bearish with 140.09 resistance intact and another fall in expected. The cross is in the third leg of the pattern from 145.68. Break of 137.71 will target 136.22 support next. On the upside, break of 140.09 will indicate near term reversal and turn bias back to the upside for 143.78 resistance.
In the bigger picture, loss of upside momentum was seen in bearish divergence condition in weekly MACD. However, the EUR/JPY is so far holding above 135.50 key support. Thus, there is no confirmation of trend reversal yet. Break of 145.68 will extend the up trend from 94.11 towards 76.4% retracement of 169.96 to 94.11 at 152.59 before topping. Meanwhile, break of 135.50 will confirm reversal and target 124.95 support.
